(Peter Casolino  New Haven Register) Dave Walker, former U.S. Comptroller General, announced an exploratory committee to run for a statewide office in CT. Walker who will run as a Republican, hinted that he may run for the post of Lt. Governor. The announcement was made on the steps of the Hartford Capitol building. pcasolino@NewHavenRegister less

(Peter Casolino  New Haven Register) Dave Walker, former U.S. Comptroller General, announced an exploratory committee to run for a statewide office in CT. Walker who will run as a Republican, hinted that he ... more

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Gov. contenders spar over municipal credit ratings

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Sometimes it’s the list your town or city doesn’t make that Trumbull’s Tim Herbst says sets him apart from his gubernatorial rivals Joe Ganim and Mark Lauretti.

Both Ganim’s and Lauretti’s cities were placed on a credit downgrade watch list this week.

Bridgeport and Shelton were among 26 municipalities flagged by Moody’s because of the domino effect of the state’s 110-day budget impasse, which the ratings agency said has cost $928 million in state aid to local governments.

Trumbull, where Herbst has been first selectman since 2010, averted a potential change to its credit rating.

Herbst said that’s a credit to his fiscal management of the town, from passing retirement reforms to fully fund the town’s pension system to imposing a mandatory rainy day fund minimum that is equal to 10 percent of the town’s annual budget.

He was critical of both neighboring mayors, especially his fellow Republican gubernatorial candidate Lauretti, who has long maintained that Shelton’s lower tax rate makes it more competitive than Trumbull.

“I think this credit downgrade shows the danger when someone is a one-trick pony,” Herbst said. “People need to know why Mayor Lauretti professes that Shelton has low taxes. They don’t maintain a healthy fund balance. They do not fund their public schools like Trumbull does. They don’t pave roads and invest infrastructure like Trumbull does. They don’t invest in their parks and open space like Trumbull does.”

Lauretti, whose 26 years in office makes him Fairfield County’s longest-serving mayor or first selectman, downplayed the Moody’s forecast as speculative and said it only matters when bonding for projects.

“I don’t have to defend everything that a novice says,”Lauretti said. “Besides, who cares? I could care less than that. I haven’t bonded in four years. My debt is so low it makes people’s heads spin.”

Herbst also took a swipe at Ganim, a Democrat who reclaimed the mayor’s office in the state’s largest city in 2015 after a prison stint for corruption and is exploring a run for governor.

“I think there are things he might have done differently in his first term,” Herbst said. “I think that was a missed opportunity to really bring the types of pension and health care reforms that would have put the city on more solid footing.”

Ganim said he was puzzled by Herbst’s comments and cited his successful efforts this year to get legislation passed allowing Bridgeport to bond its unfunded pension liabilities.

“You’re talking about Bridgeport?” Ganim said. “This is a good chance to highlight the fact that Bridgeport is restructuring our pension obligations that will save the city close to $60 million over the life of pension bonds.”

Ganim said Bridgeport has become a magnet for commercial investment that is helping to grow the city’s grand list by $2 billion and cited a $675 million privately funded MGM casino proposal as another sign of progress.

He attributed the Moody’s report to the state’s protracted budget mess.

“I talked to Moody’s. I talked to Standard & Poor’s. I talked to Fitch,” Ganim said. “This is a warning to cities and towns because of the state’s finances. It’s not a political volley at a local level. I think Bridgeport is in as strong a financial position as it can be.”

Herbst even managed to bring Dave Walker, the former U.S. comptroller general and governor’s race adversary, into the debate over credit ratings. Walker, a Republican, had previously blamed Ganim for the slow real estate market for his home in Bridgeport’s Black Rock neighborhood.

“Our fiscal health is superior, and I can guarantee you that if David Walker purchased a home in Trumbull rather than Bridgeport, he wouldn’t have trouble selling it and he would get a better return on his investment,” Herbst said.

Walker was dismissive of Herbst.

“I’ve done an extensive financial analysis on the state and a number of cities within the state, and there’s no question that Shelton is in a much better financial position and competitive posture than Trumbull,” Walker said. “Bridgeport is a challenged city, and my platform for governor includes a range of steps to turn around Connecticut and revitalize its cities, including Bridgeport.”

Danbury, where longtime GOP Mayor Mark Boughton is running for re-election and weighing a third run for governor, was also excluded from the list.

“Is it fodder?” I think it’s just symptomatic of a state budget process that’s just completely run amok,” Boughton said when asked if he would use the negative outlook against Ganim or Lauretti. “Having said all that, it’s not good to be on that watch list.”